Jim inherited 100000 portfolio of investments the portfolio, Ask an Expert

Finance

Jim inherited $100,000 portfolio of investments. The portfolio is comprised of the following 3 investments.

Expected Rate of Return $Value

T-Bills 2.9% $50,000

GMC 6.5% $31,000

Harley Davidson 13.4% $ 19,000

a) Based on the current portfolio composition and the expected rates of return, what is the expected rate of return on Jim's portfolio.

b) If Jim wants to increase his expected portfolio rate of return, he could increase the allocated weight of the portfolio he has invested in stock (GMC and Harley Davidson) and decrease his holdings of T-Bills. If Jim moves all his money out of T-Bills and splits it evenly between the two stocks, what will be his expected rate of return?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9791922

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Think about childrens education in the us describe two

Think about children's education in the U.S. Describe two factors that are currently hindering the intellectual development of children in this country. Explain why each of these factors impacts intellectual development

What do you think happened to bond prices when interest

What do you think happened to bond prices when interest rates went down in the US after the GFC?

Many drivers operate vehicles either without insurance or

"Many drivers operate vehicles either without insurance or with very low liability insurance limits. They often are in no position to pay for the damage they cause". Is this fair and should society take any action in thi ...

We have the following investments in our

We have the following investments in our portfolio: Investment Amount Expected Return Beta A Stock $2,000 ...

Soma needs loan from para soma needs 14400 and para agreed

Soma needs loan from Para. Soma needs $14,400 and Para agreed to lend the $14,400 if Soma makes one payment to Para in the amount of $18,000, to be paid four months from now. What is the EAR on this loan?

What is the effective annual rate of a savings account that

What is the effective annual rate of a savings account that pays an APR of 3% and compounds quarterly? Answer in percent and round to two decimal places.

Please show all workkanab co and zion co are us companies

Please Show All Work Kanab Co. and Zion Co. are U.S. companies that engage in much business within the U.S. and are about the same size. They both conduct some international business as well. Kanab Co. has a subsidiary i ...

Question - gj industries has 10 million shares of common

Question - GJ Industries has 10 million shares of common stock outstanding with a market price of $15.00 per share. The company also has outstanding preferred stock with a market value of $20 million, and 200,000 bonds o ...

Information provided on the stockholders equity section of

Information provided on the Stockholder's Equity section of a balance sheet: Common Stock; $10 stated value, 200,000 shares authorized, 100,000 shares issued and ?? shares outstanding $1,000,000 Market value per share of ...

Explain the goals people have for the course that project

Explain the goals people have for the course that project quality management in addition to getting an A.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert